Happy Chinese New Year!
Good Morning!
We could use some Super Bowl Monday revelers to create some excitement in today’s marketplace. In the early going with all the bad news it feels like were in the losing teams locker-room. It is the same old story of trading fear with concerns of China’s growth is a bubble or not a bubble. The crash in oil prices leading the oil majors to delay or completely walk away from projects. No more capital spending for new projects. And news Chevron Corporation (N:CVX) reached a deal with Qatar Petroleum to sell off 30% of its stake of offshore drilling areas in Morocco. These facts not to mention banking problems and Europe’s slowdown are really clouding up a clear picture leading fears and bears to the wonderful world of commodities.
In the overnight electronic session the March Corn is currently trading at 364, which is 1/34 cents lower. The trading range has been 366 ¼ to 363 ¾ so far. There is good weather and growing conditions in South America coupled with the strength of the U.S. dollar is really tightening the noose on exports which the numbers are awfully bad right now! This morning we have export inspections at 10:00 A.M. and tomorrow we have Crop Production USDA Supply/Demand data that hopefully could spark some better news.
On the Ethanol front both March and April contracts posted trades a little easier following Monday morning depression after Super Bowl Sunday. In the overnight electronic session the March contract posted a trade @ 1.429, which is .007 of a cent lower while the April contract posted a trade @ 1.440which is ½ of a cent lower.
On the Crude Oil front the market is in 0freefall mode with the negative sentiment reverberating around the globe. In the overnight session the March contract is currently trading at 3002 which is 87 points lower. The trading range has been 3138 to 2957 so far. Tomorrows API data may show bigger builds and could further pressure the market lower. However, the market has continued to show resilience at these levels until more bearish economic banking and manufacturing data becomes a rally killer showing a global recession and rally killer.
On the Natural Gas front the market is flying high with more production cuts at these price levels and February weather we are accustomed to is back. In the overnight electronic session the March contract is currently trading at 2.137 which is .074 cents higher. The trading range has been 2.156 to 2.105 so far. We may test the 2.200 to 2.220 level in today’s session.
Have a Great Trading Day!